Banks, government bonds, and default: What do the data say?

Nicola Gennaioli, Alberto Martin, Stefano Rossi, 19 July 2014

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Recent events in Europe have illustrated how government defaults can jeopardise domestic bank stability. Growing concerns of public insolvency since 2010 caused great stress in the European banking sector, which was loaded with Euro-area debt (Andritzky 2012).

Topics: Financial markets
Tags: bank lending, banking, banks, bonds, credit, financial crises, risk-weighting, sovereign debt, sovereign default

Fiscal discipline in the monetary union

Charles Wyplosz, 26 November 2012

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Three years into the Eurozone crisis and public debts are still rising, including in the three countries currently subject to rescue programmes. More countries – Spain and Italy for sure, France quite possibly – are inching towards rescues. These nations have three things in common:

Topics: EU institutions
Tags: debt restructuring, Eurozone crisis, sovereign default

Learning from past crises: Into the safety zone

Caroline Van Rijckeghem, Beatrice Weder di Mauro, 25 September 2012

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Since the lost decade of the 1980s a rich literature on financial crises has evolved, including a theoretical literature which emphasised the potential for self-fulfilling expectations within a zone of vulnerability (e.g. Krugman 1996).

Topics: EU policies, International finance
Tags: EZ crisis, sovereign debt crises, sovereign default

Contagion during the Greek sovereign debt crisis

Jakob de Haan, Mark Mink, 23 February 2012

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In the course of 2010, the financial problems of Greece became so severe that the Eurozone countries together with the IMF agreed to provide emergency loans for a total amount of €110 billion, to be disbursed over the period May 2010 through June 2013.

Topics: Financial markets, International finance
Tags: banks, Greece, news, sovereign default

They still don’t get it

Charles Wyplosz, 25 October 2011

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Editor's note: This column updates the column originally posted on 8 August 2011.

 

Topics: EU institutions
Tags: ECB, Eurozone crisis, sovereign default

Greece and the fiscal crisis in the Eurozone

Willem Buiter, Ebrahim Rahbari, 12 October 2010

CEPR Policy Insight No.51 can be downloaded free of charge from the CEPR website here.

URL: http://www.cepr.org/pubs/PolicyInsights/CEPR_Policy_Insight_051.asp
Topics: Macroeconomic policy
Tags: bail-out, eurozone, fiscal sustainability, sovereign default

Greece and the fiscal crisis in the Eurozone

The Editors, 12 October 2010

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The saga of the Greek public finances continues. But this time, Greece is not the only country that suffers from doubts about the sustainability of its fiscal position. Quite the contrary. The public finances of most countries in the Eurozone are in a worse state today than at any time since the industrial revolution, except for wartime episodes and their immediate aftermaths.

Topics: Macroeconomic policy
Tags: bail-out, eurozone, fiscal sustainability, sovereign default

It takes less than a sovereign default to cause instability

Fabio Panetta, Giuseppe Grande, 7 August 2010

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According to many commentators a sovereign default could be the next stage of the crisis (Reinhart 2010, Rogoff 2010 and Reinhart and Rogoff 2010).

Topics: Global crisis, Global economy
Tags: Debt crisis, Eurozone crisis, Fiscal crisis, sovereign default

The costs of sovereign default: Theory and reality

Ugo Panizza, Eduardo Borensztein, 6 May 2010

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Sovereign debt is different. Private debt contracts can be enforced in court and court rulings enforced by asset seizures. By contrast, public-debt creditors:

Topics: Europe's nations and regions, Global crisis
Tags: Greece, sovereign default

How to deal with sovereign default in Europe: Towards a Euro(pean) Monetary Fund

Daniel Gros, Thomas Mayer, 15 March 2010

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Background

Big financial crises are usually followed by pressure on public debt and often by sovereign default (Rogoff and Reinhart 2009). Europe, or rather the Eurozone, was caught totally unprepared for this second phase of the crisis.

Topics: EU institutions
Tags: European Monetary Fund, sovereign default

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